Whether or not there is a will, a proprietary lease in a co-op will not terminate upon the death of an owner. The decedent’s interest passes to the estate and is inherited by the beneficiary in the will or by the next of kin. That may not be the co-owner of the shares—or even the spouse of the decedent.
How does renting a coop work?
They own shares in a corporation that provides them with a proprietary lease on that specific unit. When you’re renting a co-op apartment, you’re actually subletting the apartment from the co-op shareholder who holds that lease on the unit.
Who is the owner of a co-op housing unit?
A “housing cooperative” (or “co-op”) is the legal term for a housing unit that is owned and controlled jointly by a group of individuals who have equal shares, membership, and/or occupancy rights to the housing community.
What are the restrictions on owning a co-op?
Once they buy in, co-op owners are not allowed to make any renovations without the board’s approval. There are also a number of restrictions regarding to whom co-op owners can sell their shares or rent their place, which can be frustrating. Plus, the monthly maintenance fee can be steep in some areas.
How are co-ops different from other types of ownership?
Instead, they own shares of the cooperative. With some co-ops, owners are allowed to sell their co-op shares in the open market, depending on the market rate for co-ops in that location. Co-ops are often less expensive than rental apartments because they operate on an at-cost basis, collecting money from residents to pay outstanding bills.
What does a co-op mean in real estate?
For some home buyers, particularly in New York and parts of the Midwest, cooperative living is a way of life. What is a co-op? A “housing cooperative” (or “co-op”) is the legal term for a housing unit that is owned and controlled jointly by a group of individuals who have equal shares, membership, and/or occupancy rights to the housing community.
